HemaCare Will Collect at Their Facilities and Provide Assistance in Training and Opening NeoStem Collection Centers

NEW YORK, NY -- (MARKET WIRE) -- December 20, 2006 -- NeoStem, Inc. (OTCBB: NEOI), a company
specializing in the collection, processing and long-term storage of Adult
Stem Cells (ASCs) for autologous use, today announced a five-year agreement
with HemaCare Corporation to provide NeoStem with collection services for
the procurement of adult stem cells from peripheral blood for the purpose
of long-term storage.

NeoStem expects this relationship to foster the Company's growth by
increasing its adult stem cell collection capacity and helping to expand
its collection infrastructure through HemaCare's mobile units and
freestanding facilities in Maine and Sherman Oaks, California.

Mark Weinreb, President of NeoStem, stated, "HemaCare will provide NeoStem
with all of the essential medical protocols and standard operating
procedures required for the out-patient collection of adult stem cells as
well as the training expertise for our third-party collection network."

HemaCare, a well-known provider of blood products and services to the U.S.
healthcare industry, will provide apheresis services for the purpose of
long-term storage exclusively to NeoStem for a period of five years.
HemaCare will perform these services at its own or NeoStem facilities, or
at a third-party center affiliated with NeoStem including members of
NeoStem's Physician's Network. Under the agreement, HemaCare's main
facility in Sherman Oaks, California, becomes an additional Adult Stem Cell
Collection Center for NeoStem and HemaCare will provide collection services
throughout California and the East Coast.

Robin L. Smith, MD, MBA, NeoStem's Chief Executive Officer, said, "We are
very pleased to finalize this agreement with HemaCare, whose high-quality,
cost-effective blood services are well-known to hospitals and medical
communities throughout California and on the East Coast. This
collaboration will make adult stem cell collections easier for doctors to
perform on an outpatient basis and more accessible for individuals who want
their stem cells safely collected and conveniently banked for personal and
therapeutic use as needed in the future. Adult stem cells are becoming an
important element in regenerative medicine and treatments for numerous
diseases. They have already provided helpful treatment in certain cases of
heart disease, autoimmune disease such as lupus, radiation exposure and
wound healing. We anticipate many more clinical applications using adult
stem cells."

About NeoStem, Inc.

NeoStem, Inc. (OTCBB: NEOI) is an innovative, publicly traded company
positioned to become a leader in the adult stem cell field and to
capitalize on the increasing importance that adult stem cells are expected
to play in the future of regenerative medicine.

Using its proprietary process, NeoStem provides the infrastructure, methods
and systems that allow adults to have their stem cells safely collected and
conveniently banked for future therapeutic use, as needed, in the treatment
of such life-threatening diseases as diabetes, heart disease and radiation
sickness that may result from a bio-terrorist attack. Adult stem cell
therapy has also been used for many years in treating blood cancer. Further
potential uses include regenerative therapies for wound healing, autoimmune
diseases such as multiple sclerosis and lupus, and age-related degenerative
musculoskeletal diseases.

NeoStem uses the least invasive form of collection called apheresis, a
well-known, safe procedure that extracts stem cells from an adult's
peripheral blood. Once collected, NeoStem's storage process allows the
cells to be cryo-preserved during an individual's lifetime for use when
needed. The management, Board of Directors and Advisors of NeoStem
collectively have significant technical, medical and scientific expertise
as well as substantial experience in life science marketing and business
development.

Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995, including statements concerning the ability of NeoStem, Inc.
("the Company") to develop the adult stem cell business, the future of
regenerative medicine and the role of adult stem cells in that future, the
future use of adult stem cells as a treatment option and the potential
revenue growth of the Company's business. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. The Company' s ability to enter the adult stem cell arena and
future operating results are dependent upon many factors, including but not
limited to (i) the Company's ability to obtain sufficient capital or a
strategic business arrangement to fund its expansion plans; (ii) the
Company's ability to build the management and human resources and
infrastructure necessary to support the growth of its business and obtain
appropriate state licenses; (iii) competitive factors and developments
beyond the Company's control;(iv) scientific and medical developments
beyond the Company's control and (v) other risk factors discussed in the
Company's periodic filings with the Securities and Exchange Commission
which are available for review at www.sec.gov under "Search for Company
Filings."

Pursuant to an October 1, 2006 agreement, Consulting For Strategic Growth
I, Ltd. ("CFSG1") NeoStem Inc. with consulting, business advisory, investor
relations, public relations and corporate development services, for which
CFSG1 receives a fixed monthly fee for the duration of the agreement and
received shares of NeoStem's common stock. Independent of CFSG1's receipt
of cash or other compensation from the Company, CFSG1 may choose to
purchase the common stock of the Company and thereafter sell those shares
at any time it deems appropriate to do so. For more information, please
visit www.cfsg1.com.